Asset, liability, equity, income and expense amounts for Sadoka’s Interior Decorating at 30 June 2019 are presented below.

Required

(a) Prepare an income statement for the business for the year ended 30 June 2019.

(b) Prepare a balance sheet in narrative format as at 30 June 2019.

(c) Explain succinctly the differences in the information conveyed by an income statement and a statement of cash flows.

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Cash at bank Accounts receivable Supplies Equipment Accounts payable Sadoka Nato, capital Decorating services income $ 22800 117 600 26400 125 600 33 700 ? 386 000 Advertising expense Insurance expense Rent expense Supplies expense Telephone expense Electricity expense Wages expense $36000 8000 33 000 12 600 12200 17 000 111 000